CBA Online Loan Increase (Top up)

[jrc77]

Is anyone familiar with the CBA Online Loan top up facility? It claims you can apply and get a decision online within 15 minutes.

The questions I have are:

1. What valuation does it use for your properties (say my loans are at 80% of the valuations when properties were purchased a few years ago) - is it just the last valuation they have on record for the property?

2. It asks how much top up you want - what if this takes you into LMI territory? Is this done automatically online or are you transferred to a person?

3. If the online top up is not approved, is there a hit on your credit file?

Regards,

Jason

 

[Peter_Tersteeg]

Can't comment specifically on 'online topups', but in general terms:

1. There'll be some sort of policy tool running behind the scenes for the valuation. It would likely start with an estimate by something like RP Data or Residex, etc. If the valuation is outside of certain parameters a more detailed valuation would likely be ordered.

2. I imagine the topup isn't instantanious - you put the right figures in and presto, the money appears in your account! At some point a human is going to look at the file to some degree. If the LVR is over 80% you will pay mortgage insurance. How much you pay will depend on if you've paid it previously (either a full or partial amount).

3. There's going to be a hit on your credit file the moment you apply. It's the first thing lenders do for all credit applications (not the last).

 

[Marty McDonald]

I believe it is all automated. Similar to the branch set up where they can approve vanilla deals on the spot.

In your case it will do an estimate of value of your properties based on their automated valuation system. If this is close to your estimate then can be auto approved. Surprisingly LMI is not an automatic referral to a human eye.

Had a client get an auto top up through CBA at 90% based on the clients estimate of valuation a few weeks ago. Worked really well as their place is on a good street and below suburb median price! Approved and documented with no direct credit intervention.

 

[jrc77]

Thanks guys. I might give it a go after my next IP settles (so I don't potentially interfere with the finance on that loan). I'll post my experiences.

Regards,

Jason

 

[monalisa]

Had a client get an auto top up through CBA at 90% based on the clients estimate of valuation a few weeks ago. Worked really well as their place is on a good street and below suburb median price! Approved and documented with no direct credit intervention.

Marty

Do you know if they base it on RP data? Or do they have their own software?

thanks
Mona

 

[Aaron_C]

Do you know if they base it on RP data? Or do they have their own software?

They use a combination of things to value the property.